A Quiet Week in finance…

When we sit down to discuss the latest article on recent happenings in the financial world and their impact on the supply chain and the businesses that operate in this sector, we find no shortage of topics.

We could discuss the upcoming changes to Employer NIC rates, where the amount paid on behalf of employees increases from 13.8% to 15%, as well as the reduction in the secondary threshold from £9,100 to £5,000 per year, leading to higher payroll costs soon to be borne by companies.

We could also discuss the upcoming Bank of England meetings set to be held on March 20, May 8, June 19, and August 7, with further meetings in September, November, and December. Whilst economists tell us several interest rate cuts may happen throughout 2025, the next cut is reportedly unlikely to happen at the upcoming meeting on March 20. Economists predict the BoE will likely reduce rates in May, with further cuts later in the year.

If time and space allowed, we could discuss the return of a familiar face in Mark Carney as the Prime Minister of Canada and the immediate challenges he faces, including a trade war with the US. Carney aims to pursue fiscal responsibility and social justice while forging new trading relationships, leveraging his crisis management experience to counter Trump’s hostilities.

Trade wars and tariff discussions are not limited to Canada. At the time of writing, Trump has introduced a 25% tariff on all steel and aluminium imports from around the world, as well as 25% tariffs on other imports from Mexico and a 20% levy on Chinese goods.

Retaliation has followed, with the EU targeting US goods worth a reported £22bn. These tariffs, covering products ranging from boats to bourbon to motorbikes, will start on April 1 and be fully in place by April 13. It is reported that American distillers are rushing to ship as much whiskey as possible to the EU before the above 50% tariff takes effect.

On the other side of the Atlantic, we could discuss Europe’s anticipated defence spending, which could provide an economic boost and reduce the need for the ECB to provide financial support. If we had time, we could also discuss the strengthening of the EURO, which is currently one of the top performers among G10 currencies. Increased fiscal spending and the potential end to the Ukraine war, alongside uncertainty in the US, where renewed recession fears have emerged, have led to improved sentiment toward both the EUR and GBP, causing the swift rise back to 1.29.

There are lots of things we could write about in this forum, or you could reach out to us on any specific topic, and we can discuss how any of the above may impact you and your business specifically.

EMAIL Laurence Burford, Chief Financial Officer.